It's a well established fact that consumers have more choices than ever before when it comes to shopping for items in common categories including food, beverages, general merchandise, and health and beauty care.
The blurring of channels, however, has continued to spread as products such as washing machines, dryers, and televisions that once were controlled by one or two channels have begun popping up for sale in other retail formats.
A Wall Street Journal report said the phenomena is becoming particularly pronounced in the big-screen television category where retailers such as Best Buy, Circuit City, Costco, Home Depot, Kohl's, Office Depot, Sears, Target and Wal-Mart have all tried to get a share of the $20.2 billion flat screen TV market.
"Competition has just exploded," says Greg Petersen, a Philips North America vice president and a member of the company's international retail board.
Of particular concern to retailers established in the business, such as Best Buy and Circuit City, is the prospect of a price war. Both companies owe much of their recent top and bottom line growth to the sales of big screen televisions.
Home Depot is one of the non-traditional retailers looking into whether flat screen televisions are a good fit for the company. Right now, the retailer lists 38 flat-panel televisions on its web site but does not sell any in stores. The company, according to unnamed sources in the WSJ article, is looking to test sales of televisions in its stores.
Office Depot is already selling televisions in its stores. The retailers sees TV as complementary to personal computers and monitor sales. "Our entry is absolutely a convenience play for our core customer," said John Lostroscio, vice president of merchandising.
The chain, according to Mr. Lostroscio, is moving into the larger flat-panel TV business after having a positive experience selling 20-inch sets. By October, he said, 400 Office Depot stores will stock 10 to 12 flat-panel models, including a 42-inch TV.
Mr. Lostroscio also said the chain has been testing computer-repair services and was looking to expand that to include home and office installation of TVs, as well.
Discussion Questions: What is your take on the growing number of retailers moving into big screen TV sales? Where is channel blurring heading? What other categories do you see becoming up for grabs that were once controlled by a one or two channels?